Helping plan for future major repairs and replacements.

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Reserve Studies

Current legislation in Washington, RCW 64.34.380 and 64.38.065, provide that condominium and homeowner associations shall prepare and update annually a Reserve Study, and that the initial Reserve Study must be based upon a visual site inspection conducted by a Reserve Study Professional.

  • Year 1: Full Level I Reserve Study
  • Year 2: Level III Reserve Study Update (Update without a site visit)
  • Year 3: Level III Reserve Study Update (Update without a site visit)
  • Year 4: Level II Reserve Study Update (Update with a site visit)


WHY HAVE A RESERVE STUDY COMPLETED?

In addition to the requirements of RCW 64.34 and 64.38, an increasing number of banks are requesting a copy of the association's reserve study for first and second mortgage applications of individual homeowners. A proper reserve study will:

  • Protect the Board of Directors from personal liability concerning adequate reserve funding
  • Eliminate uncertainty of over-funding or under-funding reserves
  • Maintain the community in a good state repair
  • Establish a fair & stable contribution for current and future owners
  • Comply with the American Institute of CPA's (AICPA) annual audit requirements
  • Maintain higher individual resale values
  • Reduce the risk of special assessments or borrowing


HOW CAN WE HELP?

As Reserve Study specialists, we offer a professional assessment of the condition, useful life, remaining useful life, and replacement cost of the common and limited common area components an association has an obligation to maintain; an accurate financial analysis of the current reserve; and sound recommendations on the financial contributions necessary to ensure that funds will be available when needed. Collectively, David Bach & Associates has been preparing reserve studies for 14+ years serving more than 1,500 associations in the Pacific Northwest.


WHO ELSE CAN BENEFIT FROM A RESERVE STUDY?

Aside from Condominium and Homeowner Associations, the following types of properties may also benefit from the completion of a Reserve

  • Country Club
  • Athletic Club
  • Swim Club
  • Community Center
  • Commercial Buildings
  • Apartments
  • Timeshares
  • Retirement Communities
  • Churches and other Religious Buildings
  • Schools
  • Government Properties
  • Non-profit Organizations